Singapore will gradually raise retirement age by three years to 65, Singaporean Prime Minister Lee Hsien Loong said on August 18 in his speech on the country's National Day.

The retirement age, which is currently at 62, will go up to 63 in 2022 before being raised further to 65 by 2030.

Similarly, the re-employment age, where employers must offer work in the same organisation, will go up from 67 to 68 in three years' time, and then to 70 by 2030.

The Central Provident Fund (CPF) contribution rates of Singapore will also be raised for workers above the age of 55, he added.

Currently, the total CPF contribution rate is 37 percent for workers up to 55 years old and it declines as the age band increases.

By the time the changes are completed, workers aged 60 and below will enjoy full CPF rates, said the Singaporean PM.

The CPF rates will only begin to taper down after 60 and level off after 70, he added.

The first adjustment in the CPF contribution rates is set for 2021 and will be followed by subsequent increases gradually.

Lee stressed that these newly announced adjustments do not affect CPF withdrawal policies or withdrawal ages. Workers can still take out some money at age 55 and can still start CPF payouts from age 65.

He noted that businesses can expect a support package from the Singaporean government to help them adjust to the changes, which will be announced by Deputy PM Heng Swee Keat in next year's Budget speech.

With an average life expectancy of nearly 85 years, Singapore has the longest life expectancy in the world.

Source: China ASEAN Business Council